A company markets exercise DVDs that sell for $19.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $19,530 and the variable costs (materials, shipping, etc.) are $9.45 per DVD. (A) Find the cost equation and the revenue equation. (B) How many DVDs must be sold each month for the company to break even? (C) Graph the cost and revenue equations in the same coordinate system and show the break-even point. Interpret the regions between the lines to the left and to the right of the break-even point.
A company markets exercise DVDs that sell for $19.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $19,530 and the variable costs (materials, shipping, etc.) are $9.45 per DVD. (A) Find the cost equation and the revenue equation. (B) How many DVDs must be sold each month for the company to break even? (C) Graph the cost and revenue equations in the same coordinate system and show the break-even point. Interpret the regions between the lines to the left and to the right of the break-even point.
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter1: Equations And Graphs
Section1.CT: Chapter Test
Problem 8CT
Related questions
Question
A company markets exercise DVDs that sell for
$19.95,
including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are
$19,530
and the variable costs (materials, shipping, etc.) are
$9.45
per DVD.(A) Find the cost equation and the revenue equation.
(B) How many DVDs must be sold each month for the company to break even?
(C) Graph the cost and revenue equations in the same coordinate system and show the break-even point. Interpret the regions between the lines to the left and to the right of the break-even point.
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